Project Refinance Contracts Now Come With Rate Revision Clauses

Lenders have started building in special clauses in project refinance agreements to account for regulatory risk, according to three people with knowledge about the matter.The clauses stipulate that lenders will be allowed to hike the lending rate on refinancing if the Reserve Bank of India's project finance draft regulations are finalised, said the people on the condition of anonymity.These clauses will account for the higher provisi...